Sales teams face nonstop pressure to hit targets, track performance, and respond to changing customer behavior. Metrics are everywhere, but using them well takes the right approach—and the right tools.

This roundup collects materials from The KPI Institute designed to help managers and teams get better at measuring, understanding, and improving sales performance. While some of these resources were created in earlier years, their content remains directly useful for today’s performance work. Expect practical examples, clear KPIs, and frameworks that still apply across industries.

1. KPIs for Sales Performance: This infographic outlines key metrics across the sales function. It highlights how sales KPIs support broader strategy and provides examples for tracking outcomes at multiple levels. Part of The KPI Institute’s cross-functional KPI series.
2. KPIs for Sales Cycle: Focuses on the process behind every sale—from lead generation to close. This resource groups KPIs based on sales cycle stages and helps with tracking both time and conversion at each point. Also part of the cross-functional KPI series.
3. KPIs for Sales Force: Covers metrics used to evaluate individual and team performance across sales roles. Includes examples related to activity levels, pipeline contribution, and revenue impact. One of several functional KPI infographics developed for targeted use in departments.
4. KPI of the Month: % Sales Conversion Rate: This infographic breaks down one of the most discussed KPIs in sales: conversion rate. It covers what the number really tells you, how to calculate it, and how to use it in context. Built for anyone who needs more than just a surface-level metric.
5. Top 25 Sales KPIs – 2016 Extended Edition: This report lists the most popular sales KPIs as used by professionals worldwide between 2009 and 2015. It includes two pages of documentation per KPI, plus articles on setup and selection. A reliable reference for refreshing your KPI framework or comparing current metrics to established ones.
6. The Sales and Customer Service KPI Dictionary: Covers over 220 KPIs across sales and customer service. Built for teams setting up measurement systems or fine-tuning existing ones. Includes formulas, category groupings, and terminology definitions that hold up across roles and industries.
7. Leveraging Data for Improving Sales and Marketing by Understanding the Customers: This article outlines how to use customer data to improve targeting, messaging, and performance. Focused on practical steps for translating insights into better sales and marketing alignment.
8. How Innovation Helps the Growth of Digital Sales: Explores how new tools and ideas are changing digital sales environments. The piece connects real shifts in buyer behavior with new ways of working in sales.
9. 5 Ways You Can Boost the Sales Value of Your Green Business: Gives practical tactics for making sustainable products more compelling to buyers. This article looks at sales messaging, pricing, and customer expectations tied to green business models.

These resources give sales teams structure, not just ideas. Whether you’re rebuilding your KPI system or trying to improve daily decisions, they offer real support for getting better outcomes from your efforts!

Marketing is no longer solely defined by visibility. It now centers on building authentic relationships and consistently addressing the shifting needs and values of consumers. Organizations nowadays are required to implement strategies that are both evidence-based and adaptable. A well-structured marketing function, when aligned with long-term business objectives, plays a critical role in strengthening trust, enhancing operational effectiveness, and supporting sustainable growth.

To support professionals in measuring marketing performance more effectively, The KPI Institute has released the Top 25 Marketing KPIs – 2025 Edition. This edition highlights the most impactful key performance indicators (KPIs), selected based on real-world usage and relevance across industries. Covering metrics such as customer retention, brand awareness, and customer acquisition cost, the report serves as a reliable resource for organizations aiming to align marketing efforts with performance management best practices.

To provide a glimpse into the report, here are five of the top KPIs included in the 2025 edition:

1. # Net Promoter Score – Measures how likely customers are to recommend the company’s products or services to others.
2. % Customer retention – Measures the proportion of customers an organization retains over a specific time period.
3. % Brand awareness – Measures the level of brand recognition and recall among the target audience.
4. $ Customer acquisition cost – Measures the average expense incurred to acquire a new customer.
5. % Customer satisfaction with new products and services – Measures the percentage of satisfied customers with new products and services generated through innovation initiatives.

The Top 25 Marketing KPIs – 2025 Edition goes beyond listing metrics. It provides strategic guidance for enhancing performance measurement practices in today’s complex marketing environment. This edition includes in-depth articles that explore the KPI conceptual framework, common challenges in KPI usage, and ten practical tactics for improving implementation. 

Additionally, it features enhanced documentation templates with updated formats that emphasize the most critical information for each KPI, making them easier to understand, communicate, and integrate into existing performance systems. All KPIs in this report have been carefully reviewed and updated to reflect the latest business trends, ensuring that the resource remains relevant and actionable for today’s marketing professionals.

To explore the complete list of KPIs and discover how they can support your organization’s strategic and operational objectives, download the Top 25 Marketing KPIs – 2025 Edition from the TKI Marketplace. A printed edition is also available for purchase via Amazon. Secure your copy today and stay ahead in marketing performance management.

Created by The KPI Institute, a global leader in strategy and performance research and education, smartKPIs is the most comprehensive online resource of its kind. With over 21,000 real KPIs collected from organizations worldwide, the platform helps organizations and professionals define, compare, and select the right metrics faster and with greater confidence. Whether you’re setting key performance indicators (KPIs) for the first time or refining an existing performance framework, knowing where to look and what to look for makes a difference. Here are 10 things to know about smartKPIs:

1. Massive KPI database: smartKPIs is home to over 21,000 documented KPIs, making it the world’s largest searchable repository for real-world key performance indicators. These metrics are drawn from published reports, internal dashboards, and on-the-ground case studies.
2. Structured by domains and industries: The database is organized by industry, functional area, and even departmental level, helping users find context-relevant KPIs in seconds. This makes it ideal for benchmarking, performance system design, or refreshing outdated metrics.
3. Professionally documented format: Each KPI is described using a standardized structure that includes definition, calculation formula, data source, and usage recommendations. This eliminates ambiguity and makes it easier for teams to implement indicators consistently.
4. Quality assured by research analysts: Every entry is reviewed by a team of research analysts with expertise in measurement and performance management. This curation ensures the data stays reliable, relevant, and aligned with evolving business practices.
5. Updated with real-world insights: The platform is continuously updated with indicators from actual business scorecards, public reports, and newly published research. This gives users access to trends as they unfold across industries and geographies.
6. Supports KPI selection and cascading: smartKPIs helps users identify KPIs that align with strategic objectives and cascade them across organizational levels. Whether you’re managing enterprise strategy or tracking individual performance, it offers examples that scale.
7. Enables benchmarking across sectors: With thousands of KPIs covering both common and niche sectors, users can compare metrics across industries to see how others measure similar goals. It’s especially useful for organizations looking to innovate or localize best practices.
8. Integrates with learning tools and guides: Each KPI links to additional resources, such as toolkits, implementation guides, and online training offered by The KPI Institute. This creates a more complete support system for users looking to build internal capability.
9. Trusted by global users: From Fortune 500 companies to government agencies and non-profits, the database is used by strategy, HR, finance, and operations teams around the world. It’s a preferred reference for those designing performance systems from scratch or improving legacy setups.
10. Accessible with flexible plans: The platform offers a range of subscription options depending on organizational needs, from individual licenses to enterprise access. Users can also explore free samples before committing to full access.

For anyone working in performance design or KPI reporting, smartKPIs is more than a database—it’s a decision support tool. Visit the platform to explore real indicators, save time, and sharpen your measurement approach!

Local governments are responsible for shaping the quality of life in communities. Being the most immediate level of authority to citizens, local governments are responsible for providing basic services like public safety, sanitation, local infrastructure, education, and health. Their role covers governance, allocation of resources, and sensitivity to community needs.

To fulfill this role effectively, local governments must adopt robust performance management systems that enable them to monitor progress, assess impact, and ensure accountability in service delivery. At the center of these systems are key performance indicators (KPIs)—quantifiable metrics that translate strategic objectives into measurable outcomes. KPIs can help local authorities track the efficiency of services, identify performance gaps, and make timely, evidence-based decisions. By providing clear benchmarks and real-time insights, KPIs empower governments to remain agile in the face of evolving community needs and increasing operational complexity.

In line with the growing need for effective performance measurement, The KPI Institute’s Top 25 Local Government KPIs – 2025 Edition offers a valuable resource that can support local governments in strengthening their performance measurement practices. The report features a curated selection of the most relevant and widely used KPIs across local governance, based on comprehensive research and global benchmarking. 

Covering core service areas such as budgeting, infrastructure, public safety, and citizen satisfaction, each KPI in the Top 25 Local Government KPIs – 2025 Edition is presented with a standardized definition, calculation formula, and practical application guidance. This edition serves as a helpful reference for municipalities seeking to enhance data-driven decision-making, improve service delivery, and align operational efforts with strategic goals. To provide a glimpse into the report, here are five of the top KPIs included in the 2025 edition:

1. # Recruit to hire ratio for job placements – Measures the proportion of referred applicants who are successfully hired through employment programs facilitated by the local government.
2. % Unemployment rate – Measures the percentage of the active labor force that is unemployed within the total active labor force.
3. % Online public procurement – Measures the proportion of public procurement orders completed electronically by government entities, compared to the total number of procurement transactions during the reporting period.
4. $ New school construction cost per square foot – Measures the average cost of school construction per square foot of developed area.
5. $ Ratio of reinvestment into the community – Measures the proportion of a local government’s total revenue that is reinvested into community development and public services.

The Top 25 Local Government KPIs – 2025 Edition offers in-depth articles, where you can discover new thought leadership articles that dive into the performance measurement concept framework, prevalent KPI use challenges, and 10 pragmatic tactics for more effective KPI implementation. It also features improved documentation templates with revised forms that now highlight the most important information of every KPI, making them simpler to comprehend, communicate, and incorporate into performance systems. All KPIs have been extensively reviewed and updated to address the most recent business trends, so the report continues to be a current and useful resource.

To explore the full list of KPIs and understand how they can support your local government’s strategic and operational objectives, download the Top 25 Local Government KPIs – 2025 Edition from the TKI Marketplace. A printed edition is also available for purchase via Amazon. Get your copy today!

Balancing business priorities can feel like maintaining a three-legged stool—if one leg is weaker or shorter than the others, stability is lost. In the same way, organizations today must give equal attention to employee well-being, sustainability, and service performance to achieve long-term success. Each leg represents a critical area of performance, and without clear indicators to measure and manage them, efforts can falter despite the best intentions.

Aon’s 2022–2023 Global Wellbeing Survey reveals that employee well-being has become a leading priority for employers across the Asia Pacific (APAC) region, with nearly 40% identifying it as their top focus for the next five years. Since 2020, investments in well-being programs in APAC have increased by 27%, and half of the surveyed companies now allocate at least 4% of their total company and benefits budgets to well-being initiatives. However, despite these growing commitments, employee well-being continues to decline. The data shows that 38% of employees are at risk of mental health challenges, and over 65% are already experiencing burnout.

On the consumer side, sustainability is gaining ground as a key purchasing driver. A 2024 PwC survey revealed that consumers are willing to pay an average premium of 9.7% for goods that are sustainably produced or sourced, even in the face of economic uncertainty. Supporting this trend, research shows that strong environmental, social, and governance (ESG) performance is increasingly linked to stronger financial returns. According to Kroll’s ESG and Global Investor Returns Study, companies categorized as ESG Leaders achieved an average annual return of 12.9% globally, substantially higher than the 8.6% return of ESG Laggards. This reflects a nearly 50% performance premium for companies with high ESG ratings.

At the same time, service efficiency remains a key differentiator in customer loyalty. In the Contact Center Trends 2025, research reveals that call centers that minimize wait times tend to build stronger customer loyalty. When customers are satisfied with how long they wait, they are three times more likely to recommend the brand and 2.6 times more likely to trust it and make repeat purchases.

In light of these trends, it is more important than ever for organizations to adopt a balanced approach to performance management. One that reflects the interconnected nature of well-being, sustainability, and financial outcomes. This quarter, The KPI Institute spotlights three key performance indicators (KPIs) of the Month, and each illustrates how organizations can track and balance people, planet, and profit. 

KPI of April: % Employee Burnout Rate – This metric measures the proportion of employees experiencing symptoms of burnout during the reporting period. This KPI is used to assess workplace conditions and track overall employee well-being.

Burnout poses serious risks to productivity, engagement, and employee retention, which is why organizations need to track it early and take preventive action. Using reliable tools like the Maslach Burnout Inventory (MBI) can support accurate assessment. The MBI consists of 22 items that evaluate emotional exhaustion, detachment, and a diminished sense of achievement. To learn more about this tool and others like it, you can download the free digital poster from the TKI Marketplace.

KPI of May: $ Carbon offset investments – This indicator tracks the organization’s investment in purchasing or generating carbon offsets, each equivalent to one metric ton of carbon dioxide reduced or removed from the atmosphere. These offsets typically support certified projects aimed at lowering greenhouse gas (GHG) emissions. The main goal is to help organizations reduce their carbon footprint and contribute to global climate action.

Various registries offer carbon offsets, with prices ranging from as low as $1 to over $30 per metric ton, depending on the project’s type, quality, and certification. An analysis by Carbon Brief shows that top carbon credit buyers from 2020 to 2022 include Shell, Volkswagen, and Chevron. Want to learn how to get started with carbon offsetting and align your environmental KPIs with global standards? Download the free digital poster via the TKI Marketplace.

KPI of June: % First call resolution rate – This metric tracks the percentage of customer inquiries resolved during the first interaction with a service representative, based on the total number of unique inquiries received within the reporting period. It serves as a key indicator of how efficiently and effectively the customer service team handles issues without the need for follow-ups.

Research by the Service Quality Measurement (SQM) Group shows that the average % First call resolution rate among call centers ranges from 70% to 79%. Achieving a % First call resolution of 80% or higher is considered world-class level reached by only 5% of call centers. Boost your service team’s performance and hit that world-class benchmark. Explore the free digital poster on the TKI Marketplace.

These digital posters are part of the KPI of the Month series by The KPI Institute. It is a free infographic series designed to provide practical insights into the application of key performance indicators. Each edition focuses on one specific KPI, offering clear explanations of terminology, addressing common challenges in its use, and outlining essential details such as its definition, calculation, Balanced Scorecard relevance, data profile, typical targets, and actionable recommendations.

How do you navigate a ship when the weather is unpredictable and the map keeps changing?

That’s the dilemma that confronts most organizations today, where volatility, complexity, and perpetual change are the new normal. Under these conditions, successful strategy and performance management are no longer choices, but necessities. Business corporations are being asked to produce quantifiable results, react nimbly, and connect long-term vision to day-to-day action.

To assist professionals in dealing with such demands, The KPI Institute has published the Top 25 Strategy and Performance Management KPIs – 2025 Edition. The definitive report highlights the most effective key performance indicators (KPIs) through evidence-based usage data, empowering decision-makers with facts to fortify their performance architectures and achieve strategic success.

This edition is a part of the Top 25 KPIs – 2025 Edition report series authored by The KPI Institute. This provides new perspectives into implementation strategies of KPI and captures successful performance management practices in industry settings. Ranging across diverse indicators—beginning from Strategic Initiative Completion Rate to KPI Implementation Rate—the report depicts current usage trends developed through the dataset accumulated during the period from January 2023 through April 2024 using smartKPIs.com data.

The KPIs in this report are the most widely used metrics in strategy and performance management, offering practitioners a solid benchmark to measure and improve their existing measurement systems. For a quick overview, here are the top five out of the 25 KPIs from the report:

1. # Performance Management Capability Maturity Level – Measures the complexity of an organization’s performance measurement function and its alignment with international best practices, based on the maturity assessment framework developed by the Global Performance Audit Unit and The KPI Institute.
2. # Strategy Planning Capability Maturity Level – Assesses the complexity of the organization’s strategic planning function and its compliance with international best practices, using the maturity assessment framework developed by the Global Performance Audit Unit and The KPI Institute.
3. % Performance reports produced on time – Tracks the percentage of performance reports submitted as originally scheduled, relative to the total number of reports planned for submission.
4. # Operational performance reviews conducted – Evaluates how many formal assessments are carried out on operational processes, procedures, and outcomes during a specified period.
5. % Active KPIs – Calculates the percentage of KPIs that are actively tracked and monitored, compared to the total number of KPIs selected.

KPIs are the backbone of contemporary performance management. They help organizations track progress, identify problems, and realize strategic objectives. As sectors change and complexity increases, having access to real-time, accurate KPI benchmarks enables organizations to stay flexible and up to speed.

The Top 25 Strategy and Performance Management KPIs – 2025 Edition offers In-depth articles, where you can discover new thought leadership articles that dive into the Performance Measurement Concept Framework, prevalent KPI use challenges, and 10 pragmatic tactics for more effective KPI implementation. It also features improved documentation templates with revised forms that now highlight the most important information of every KPI, making them simpler to comprehend, communicate, and incorporate into performance systems. All KPIs have been extensively reviewed and updated to address the most recent business trends, so the report continues to be a current and useful resource.

Whether you’re revitalizing an existing measurement system or advocating for KPI adoption within your organization, the Top 25 Strategy and Performance Management KPIs – 2025 Edition is an essential resource for keeping pace with performance management best practices. You can download the digital version via the TKI Marketplace or get your hands on the print version by ordering via Amazon. Secure your copy today!

From powering vehicles on daily commutes to fueling airplanes across continents, from heating homes during cold seasons to generating electricity that lights up cities, oil and gas are deeply embedded in life. Even the production and transport of countless everyday items depend on these energy sources—we rely on them to keep the world moving and growing.

The oil and gas industry is one of the largest sectors in the world in terms of dollar value. According to IBISWorld, the industry generated an estimated $4.2 trillion in global revenue by the end of 2024. This reflects a compound annual growth rate (CAGR) of 6.0%, with a modest 1.9% increase recorded in 2024 alone. 

This sustained growth reflects not only global energy demand but also the industry’s ongoing shift toward digital transformation. As oil and gas producers increasingly adopt advanced technologies like big data analytics and machine learning, the role of key performance indicators (KPIs) becomes even more vital. These innovations enhance exploration accuracy, boost production efficiency, reduce environmental impact, and generate vast performance data. Leveraging KPIs enables organizations to track these improvements, benchmark success, and make data-driven decisions that align with evolving energy demands and sustainability goals.

To support performance monitoring and strategic decision-making in the oil and gas industry, The KPI Institute has released the Top 25 Oil and Gas KPIs – 2025 Edition, the first report of the Top 25 KPIs series in 2025. This report combines the most relevant and widely used KPIs across the sector to offer valuable insights into operational efficiency, financial performance, safety, and sustainability. Whether for benchmarking, performance improvement, or aligning with industry best practices, the KPIs featured in this edition serve as essential tools for navigating the complexities of the oil and gas industry in 2025 and beyond.

What’s inside the report?

While the Top 25 KPIs series has been ongoing, this marks the first dedicated oil and gas edition since 2018, which presents refreshed content, updated metrics, and a more refined structure that reflects the evolution of our reporting approach over the years.

The Top 25 Oil and Gas KPIs – 2025 Edition report offers practical guidance on how KPIs can enhance clarity, focus, and overall performance. While they are a valuable starting point for identifying relevant KPIs, these reports are not intended as definitive solutions. Instead, they represent the most popular KPIs based on smartKPIs.com data and user engagement.

This report is designed for practitioners, academics, and consultants involved in performance management. It covers the basics of KPIs, such as explaining key terminology and their application across organizations to drive performance, highlighting KPIs’ role in the Performance Measurement Framework, and exploring the governance structures that will ensure effective management.

Furthermore, the report features an updated two-page KPI Documentation Form template, including refined fields based on The KPI Institute’s latest research. It also offers practical tips for KPI reporting and visual examples of scorecards and dashboards to support real-world applications.

For a quick overview, here are the top five KPIs from Top 25 Oil and Gas KPIs – 2025 Edition report:

1. % Drilling rig utilization rate – Tracks the percentage of time an operational drilling rig is actively in use compared to the total time it is available for drilling activities.
2. % Non productive drilling time (NPT) – Measures the percentage of time when drilling operations are halted or the penetration rate is significantly low, relative to the total production time.
3. # Process leaks identified during operation or downtime – Quantifies the number of unintended substance releases from industrial equipment or systems during operational phases or scheduled downtime within the reporting period.
4. $ Drilling cost per meter – Determines the average cost of drilling per meter or foot of well drilled.
5. % Drilling success rate –  Measures the percentage of exploration wells that successfully encountered oil and gas reserves, compared to the total number of exploration wells drilled

Now that you’ve had a glimpse of the top metrics, are you ready to take your performance to the next level? Explore the Top 25 Oil and Gas KPIs – 2025 Edition for a deeper dive into each featured KPI above, plus 20 more in the report. Unlock practical insights to enhance operations, boost efficiency, and stay ahead in a competitive industry. Download the full report today by visiting the TKI Marketplace. You can also purchase a physical copy via Amazon. 

Performance gaps often start not from a lack of effort, but from a lack of clarity. When teams don’t know what to aim for or how success is measured, resources are wasted, and strategic goals drift out of reach. One way to bridge the gap between strategy and execution could be to use key performance indicators (KPIs) that help translate abstract goals into measurable actions.

However, according to The KPI Institute’s State of Strategy Management Practice – 2023 Global Report, many organizations still face foundational challenges with KPIs: 25% struggle to align KPIs and targets across departments, while 24% find it difficult to select the right KPIs—an issue that has grown by 4% over the past year. Despite these hurdles, KPI usage remains strong across both people and business performance. In fact, the same report reveals that organizations primarily use KPIs in two key areas: employee performance evaluations and corporate performance monitoring, with 60% of respondents emphasizing both. 

With KPIs influencing both day-to-day decisions and long-term priorities, their impact is far-reaching. However, when not aligned with strategic goals, they can create a gap between what the organization aims to achieve and what it delivers. That is why it is critical that they reflect strategic priorities, not just routine activities.  

To put this all into practice, we’re highlighting two KPIs in Q1 2025 that directly link operational efficiency with broader strategic goals: 

KPI of February: % Return on assets (ROA) – This metric evaluates a company’s ability to generate profit from its total assets, shown as a percentage of net income to assets. It aims to analyze how well a business utilizes its assets to drive profitability.  Aligning asset utilization with strategic growth goals helps companies achieve greater financial efficiency and improve competitive positioning in their industry.

When evaluating % ROA, it’s important for companies to benchmark against peers in the same industry, as asset structures vary. For instance, manufacturing firms tend to be asset-intensive and rely heavily on physical resources to drive income. Unlike businesses in the technology or service sectors, these companies typically depend on intangible assets like software, data, or expertise.

To learn more about how to utilize this metric, get a free copy of the poster from TKI Marketplace.

KPI of March: % Production schedule attainment – This indicator measures how much of the actual production output was completed as scheduled within the reporting timeframe. This metric helps verify whether the production process stays on track with the planned schedule.

Organizations can improve their % Production schedule attainment by adopting scheduling techniques that align with their business model and operational requirements. When production is on schedule, organizations can reduce costs, improve resource utilization, and enhance customer satisfaction, all of which directly contribute to long-term competitiveness and profitability. To explore how various scheduling methods impact this KPI and gain deeper insights into the indicator, download a free copy of the poster from the TKI Marketplace.

These digital posters are part of the KPI of the Month series by The KPI Institute. It is a free infographic series designed to provide practical insights into the application of key performance indicators. Each edition focuses on one specific KPI, offering clear explanations of terminology, addressing common challenges in its use, and outlining essential details such as its definition, calculation, Balanced Scorecard relevance, data profile, typical targets, and actionable recommendations.

 The KPI Institute (TKI) has introduced a full series of key performance indicator (KPI) posters aimed at improving strategy and performance management in organizations. This initiative underlines TKI’s continuing mission in promoting business excellence by offering leaders practical resources for sharpening their managerial and operational focus.

The KPI posters for strategy and performance management are part of the broader KPIs for Functional Areas series. This series explores KPIs tailored to different organizational functions, aligning them with strategic objectives using the balanced scorecard framework. Each set of posters offers detailed insights into KPI definitions, component metrics, and calculation methods, drawing on TKI’s extensive consultancy experience.

The KPI posters for strategy and performance management focus on four key areas:

1. KPIs for Corporate Performance Management: These metrics provide a detailed analysis of the health and performance of an organization. They monitor performance in relation to strategic plans and guarantee compliance with strategic directions. Examples are % KPIs below target and # Time to compile the performance report.
2. KPIs for Strategic Planning: These measurements are useful for leaders to create and implement efficient strategic management plans. Examples are # Stakeholder Engagement Index, % KPIs updated in the system, and # Strategic workshops conducted.
3. KPIs for Initiatives Management: Through monitoring the level of accomplishment and results, these KPIs assist in confirming that certain organizational undertakings are on track and delivering expected outcomes. Examples are # Resource capacity per project, % Portfolio budget spending, and # Benefit cost-ratio of strategic initiatives.
4. KPIs for Performance Analytics: Metrics in this category are used to help in the decision-making process by giving a trend analysis of performance. They support the executives in the evaluation of data and defining areas of potential enhancement. Examples are % Decisions based on data insights and # Data security incidents.

Discover how these KPI posters can benefit your organization. Download them for free here: KPIs for Strategy and Performance Management.

Project management is much like an iceberg—while deadlines, budgets, and deliverables are the visible markers of success, underlying challenges often lurk beneath the surface. Hidden risks, inefficiencies, and misaligned expectations can quietly accumulate until they result in significant setbacks. 

Many projects struggle due to poor stakeholder engagement, uncontrolled scope expansion, inefficient resource allocation, and inadequate risk planning. One way to address these challenges is to implement key performance indicators (KPIs). Choosing and utilizing the right KPIs helps organizations identify the challenges early and provides measurable insights that can guide decision-making, enhance accountability, and ensure projects stay aligned with strategic goals.

To navigate these challenges, let’s examine common project management pitfalls and the KPIs that can help mitigate them.

Common Project Management Pitfalls

One of the common project management pitfalls is ineffective resource management, characterized by overallocation that leads to burnout and delays, and poor visibility, which hinders efficient task assignment. Additionally, underutilization wastes capacity and increases costs.

When resources are not effectively allocated, some employees become overburdened while others remain underutilized, leading to inefficiencies and workplace dissatisfaction. According to Gallup, a survey of nearly 7,500 full-time employees revealed that 23% frequently or always feel burned out at work, while another 44% experience burnout occasionally, which means nearly two-thirds of workers face this issue.

Furthermore, Gallup explained that the organizational impact of burnout is significant because burned-out employees are 63% more likely to take sick leave and 2.6 times more likely to look for a new job. Even those who remain tend to have 13% lower confidence in their performance and are half as likely to engage in goal-setting discussions with their managers, reducing overall productivity and engagement.

Another common pitfall is project financial management, where poor budgeting, inaccurate forecasting, and uncontrolled expenses cause cost overruns and financial instability. Without proper cost tracking, projects exceed budgets due to unforeseen expenses, inefficient resource allocation, or scope creep. Limited financial visibility leads to funding shortages, rushed decisions, and compromised quality.

Project financial management controls expenses, revenue, and profit through budgeting, cost estimation, funding, and expense tracking. The project manager oversees budget adjustments to ensure completion within budget, scope, and timeline.

According to TeamStage, cost overruns are a major challenge, with 55% of project managers citing them as a reason for project failure. While effective financial management establishes clear roadmaps and milestones, only 34% of projects stay within budget, underscoring the prevalence of financial mismanagement.

To overcome challenges, organizations can leverage KPIs to enhance project management. The KPI Institute’s Top 25 Project Management KPIs – 2024 edition report provides valuable insights that would help organizations identify and apply the most relevant metrics to enhance performance and ensure project success.

Top 5 KPIs to Optimize Project Resources and Finances

1. # Earned man-hours – tracks the total man-hours corresponding to completed work, assessing job productivity and project progress. Businesses are encouraged to adopt a man-hours-based monitoring approach, which involves tracking planned, earned, and actual man-hours with labor efficiency. This method ensures accurate monitoring, aids manpower planning, and improves execution efficiency.

2. % Project budget variance – calculates the deviation between actual and planned project costs upon completion, reflecting financial discipline in project planning and execution. Budget overruns often stem from inaccurate cost estimation or delays leading to extra expenses. An ideal budget variance aligns with project goals and organizational objectives while demonstrating effective financial management.
3. # Schedule Performance Index (SPI) – evaluates project progress by comparing earned value to planned value, indicating efficiency in value generation. A higher ratio reflects better alignment with the planned schedule, ensuring optimal resource utilization and timely project completion.
4. % Project resource utilization – calculates the percentage of allocated man-hour resources utilized in a project, reflecting resource planning accuracy and utilization efficiency. Automated tracking through project management software enables real-time monitoring at various stages, milestones, or project completion, ensuring optimal resource use.
5. $ Cost avoidance savings – tracks savings from cost avoidance initiatives, such as procurement strategies and process improvements, by preventing future expenses rather than reducing current costs. This KPI helps monitor financial efficiency through negotiating better supplier terms, securing lower purchase prices, obtaining free value-added services, or establishing long-term contracts with price protection.

These KPIs are part of The KPI Institute’s Top 25 Project Management KPIs, a report within the Top 25 KPIs 2024 series, highlights the most widely used KPIs across industries based on smartKPIs.com viewership data from January 2023 to April 2024.

The report provides insights into performance measurement trends, KPI challenges, usage contexts, and 10 strategies for effective implementation. Each KPI has been thoroughly researched and updated to reflect the latest business trends. The 2024 edition also features an improved documentation template to ensure key details are presented. 

Explore more project management KPIs by downloading the Top 25 Project Management KPIs – 2024 Edition today via the TKI Marketplace. You can also get your copy now through Amazon.